Tesla reduced EV prices more than BYD in 2023, reveals report

Tesla reduced prices for its electric cars in China exceeding BYD Han series sedan in 2023, reveals market analyst.

US-based firm JL Warren Capital revealed that Tesla cut down prices of its Model 3 by 6% compared to December last year. On the other hand, Model Y prices reduced by 11%.

Compared to Tesla, BYD Han only reduced prices by 5% during the same timeline.

BYD Han sells cars above 200,000 yuan ($28,000) and other of its offerings are even less than this price tag. It is the only car maker that is giving fierce competition to its US-based rival.

In contrast, BYD increased its sales promotions through 2023 and reduced 10% or 17% from some of the models.

“Double-digit discounts are a common promotion practice to stimulate sell-through and meet the sales target,” said JL Warren Capital CEO and Head of Research Junheng Li.

Nio, a flagship electric car maker also participated in the price reduction war earlier this year as it failed to avoid this industry-wide competition.

It is expected that the market penetration rate will be around 40% next year and a slowdown from a 35% increase in 2023.

Back in October, the China Passenger Car Association (CPCA) reported that the Chinese car industry would record a sales boom between October and December.

This boom will be led by BYD and Li Auto to smash monthly delivery records while achieving a full-year growth target of 8.5 million EVs.

BYD reported sales of 301,903 new energy vehicles in November. Meanwhile, Tesla led with 435,059 EVs in the third quarter.

(source – CNBC)